US paraffin wax prices increase 5 cents/lb

05 May 2011 21:19[Source: ICIS news]

HOUSTON (ICIS)--US fully refined paraffin wax (p-wax) and slack wax prices have increased 5 cents/lb for May to a range of 85-91 cents/lb, making alternative waxes more competitive, sources said on Thursday.

P-wax producers, including major supplier ExxonMobil, have announced increases of 5 cents/lb ($110/tonne, €74/tonne) effective in May for products in the 125F-140F melt range, with premiums of up to 6 cents/lb being asked for higher melts, sources said.

With the increase, slack wax prices higher for May moved to a range of 55-61 cents/lb, up from 50-56 cents/lb in April.

"The only alternative for candle makers and other users of p-wax is to source lower-cost p-wax from China," a candle-making buyer said.

"The increases in p-wax prices also make soy wax and other alternatives more competitive in the marketplace," the buyer said.

Soy wax prices were expected to fall as soybean oil futures prices this week decreased along with most other commodities at the Chicago Mercantile Exchange.

Based on the close of soybean oil futures on Thursday at 55.38 cents/lb, soy wax could soon be selling in the range of 75-80 cents/lb, down from 78-83 cents/lb last week.